Trump’s midterm nightmare deepens as inflation surges and gas prices skyrocket across America

DAILYMAIL.COM • 1h ago

By BENJAMIN CURRY, US DEPUTY CONSUMER EDITOR Updated: 20:53 14 Oct 2026

Price hikes across the US economy only worsened in September, deepening the threat to the Congressional Republicans and President Donald Trump ahead of the November midterm elections.

The deteriorating data comes amid a surge in diesel and gasoline costs, as the Bureau of Labor Statistics (BLS) reported that the Consumer Price Index (CPI) rose by 0.6 percent last month after climbing 0.4 percent in August.

In the 12 months to September, the annualized CPI rose to 3.7 percent, higher than the 3.4 percent annual advance in August.

And making things even worse for the GOP, it arrives in the wake of continuing deterioration in consumer sentiment seen in other surveys – plus a plunge in President Trump’s approval rating, driven by angst over the rising cost of living.

‘For ordinary Americans, this report is nothing to celebrate. Prices are rising, and borrowing will soon get even more expensive,’ Nic Puckrin, markets expert and former Goldman Sachs analyst, told the Daily Mail.

The dire inflation data drops exactly two weeks to the day ahead of the next interest rate decision out of the Federal Reserve, and experts say this makes it even more likely that the nation’s central bank will hike again.

And that looming decision comes amid surging mortgage rates, as the cost of a 30-year fixed mortgage blew right through 7 percent earlier this month and notched a reading of 7.48 percent – worsening home affordability for Americans.

A recent Reuters/Ipsos poll showed about 78 percent of Americans blamed Trump’s policies, including tariffs on imports and the US-Israeli war with Iran, for rising prices, which are outpacing wages.

The September CPI inflation report was keenly awaited by millions of retirees and other Social Security recipients trying to figure out how much their benefits will increase next year.

The Social Security Administration uses the BLS data from the third quarter of 2025 to the third quarter of 2026 to determine the annual cost-of-living adjustment – or COLA – for Social Security benefits in 2027.

The programs benefit older Americans who have retired as well as the disabled and certain ⁠widows, widowers and children.

The Senior Citizens League, one of the nation’s biggest seniors groups, projected a 3.5 percent COLA raise in 2027 – up from 2.8 percent in 2026.

According to eToro’s US investment analyst Bret Kenwell, CPI inflation has now outpaced annual wage growth for a sixth consecutive month.

‘In other words, prices are rising faster than paychecks,’ Kenwell told us. ‘Consumers are not only paying more for everyday expenses, but their income is failing to keep pace, a dynamic that could finally throttle the consumer after continued resilience in the face of mounting macroeconomic pressure.’

Removing food and energy costs gives analysts a look at so-called ‘core CPI,’ which rose 0.3 percent for the month and 2.6 percent on an annual basis, slightly higher than August.

So ordinary Americans are losing purchasing power every month, Puckrin said, even when you strip out volatile food and fuel prices from the headline inflation numbers.

Higher energy costs remain the biggest driver of higer inflation. The energy index rose 5.2 percent in September as the Iran war showed no signs of ending anytime soon.

According to AAA, gasoline prices remain close to the highest they’ve ever been for this time of year. The national average has fallen about 10 cents over the past week to $4.33, pump prices remain at record highs for autumn.

Officials at the Federal Reserve are getting more and more nervous that the longer the conflict in the Middle East lasts, the greater the likelihood that high energy prices will become embedded in the expectations of regular consumers and businesses alike.

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